CDB on Haywood Securities’ Watch List for Q2 201613 Junior Miners on Haywood Securities Watch List for Q2 2016
Investing News Network
By Teresa Matich
Wednesday April 20, 2016 3:45 PM
Haywood Securities put out its Junior Exploration Report for the second quarter of 2016 this week, including its revised watch list of junior miners.
13 Junior Miners on Haywood Securities Watch List for Q2 2016
Investing News Network
By Teresa Matich
Wednesday April 20, 2016 3:45 PM
Haywood Securities put out its Junior Exploration Report for the second quarter of 2016 this week, including its revised watch list of junior miners.
It has been a tough few years for the junior mining sector, but in the first quarter of 2016, things started to look up a bit. [J]ust as sentiment in the mining sector ebbed to critical lows, commodity prices started to rise at the end of January, Haywood Securities stated, noting that gold prices rose above$1,100 per ounce on January 21 and above $1,200per ounce on February 11 .
Currently, gold prices are sitting at $1,253.30 per ounce. Since the publication of Haywood Securities last mining report, the S&P TSX Global Gold Index (TSX: TTGD ) has risen roughly 37 percent.
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Meanwhile, industrial metals and base metals prices saw gains as well. Haywood Securities pointed out that this was illustrated by share price rises for a number of the worlds major diversified miners.
While companies such as BHP Billiton ( NYSE : BHP,ASX:BHP,LSE:BLT), Rio Tinto ( NYSE : RIO,ASX:RIO,LSE:RIO) and Glencore (LSE: GLEN ) hit multi-year lows in January, most saw substantial gains by the end of the first quarter. BHP gained 24 percent, while Rio Tinto was up 22 percent andGlencore was up an impressive 55 percent. Haywood noted that many commentators see the rise in base metals as a short term recovery, but the bump in prices is encouraging nonetheless.
Finally, Haywood also noted an increase in the number and size of equity financings in the mining sector, and in the number of streaming, royalty and M&A deals. Overall, the climate is suggesting that things could be looking up for the mining space.
It is apparent from the recent spate of financings and M&A deals that mining corporations are beginning to see the light at the end of the tunel in terms of the current market downturn in commodities; at the very least, there are encouraging signs that a bear market in the commodities space has hit a bottom, Haywood Securities stated.
We view the next quarter as a critical juncture for the mining sector , and the junior mining space in particular, as investors remain wary of a similar correction to that experienced in years since 2011.
Heres a look at 13 junior miners that Haywood Securities will be watching over the coming quarter. Interestingly, this quarters list was dominated by base metals companies, with three gold companies, two uranium companies and one silver company also making the list.
Additions to the list for the second quarter of 2016 include AQM Copper (TSXV: AQM ), Arizona Mining (TSX: AZ ), Cordoba Minerals (TSXV: CDB ), GPM Metals (TSXV: GPM ), Pure Energy Minerals (TSXV:PE ), Pure Gold Mining (TSXV: PGM ) and Vendetta Mining (TSXV: VTT ).
Meanwhile, Balmoral Resources (TSX: BAR ), Barkerville Gold Mines (TSXV: BGM ), Barsele Minerals (TSXV: BME ), Gold Standard Ventures(TSXV: GSV ), Marathon Gold (TSX: MOZ ), NGex Resources (TSX: NGQ ), Purepoint Uranium (TSXV:PTU ) appeared in Haywood Securities Q2 2016 report, but were not featured this quarter.